Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for June 30:
- SBOs urge Congress to consider different forms of aid
- Unemployment checks look grim if federal assistance expires
- Second round of closures would be devastating to most small businesses
SBOs urge Congress to consider different forms of aid
“It’s not in the next 30 to 60 days — it’s just not the question anymore for us. It is about 6 months to a year, how do we maintain with a 50% patronage?”
With approximately $130 billion in unclaimed Paycheck Protection Program (PPP) funds, small business owners are urging federal lawmakers to consider structuring future assistance programs differently.
The PPP was intended to serve as a bridge during short-term closures, but with no end in sight to social distancing, many small businesses are wondering how they are supposed to keep their doors open when they’re only allowed to operate at half capacity.
Senate Republicans have indicated that they want small business funding to be a big part of the next round of stimulus legislation.
Federal unemployment benefit to expire in July
“Hawaii’s minimum, the lowest of any state, will be just $5 a week if the federal $600-a-week supplement expires after July.”
Speaking of stimulus legislation, unless Congress takes action soon, the $600 per week unemployment benefit from the federal government will expire at the end of July, leaving many unemployed workers concerned about how they will pay bills.
While each state is responsible for setting their own minimum amount of unemployment payments — and the minimum varies significantly from state to state — economists estimate that most unemployed workers will bring home a third of their usual pay without federal assistance.
2nd round of closures would be devastating to SMBs
“And I’m getting spooked about what will happen next. If we have to go into full lockdown again, all bets are off.”
As states move to curb surging infections rates, small business owners are pondering how they will weather a second round of shut downs. The PPP will no longer issue new loans after today and any hopes of operating normally in the near future are quickly disappearing.
Some SBOs are advocating automatic loan forgiveness up to $150,000, while others are saying that they would rather close than take on more debt while the future is so uncertain.